Skip to main content

tv   Bloomberg West  Bloomberg  April 29, 2014 6:00pm-7:01pm EDT

6:00 pm
takes unprecedented action against clippers owner donald sterling. banning him for live. first, a check of your bloomberg top headlines. crippledrge clipper --
6:01 pm
ebay postings. they reported a $2.3 billion loss. the reason, ebay has decided to repatriate cash from overseas. repatriation, which many are choosing not to do, or change its financial flexibility. apple and send selling made closing arguments today. they accuse samsung of frenzied activity copying the apple features. samsung accuse apple of twisting words, saying three patents accused of infringing are not used on the iphone. employees -- that he does not believe he has legitimate legal claims. he cannot know for certain what
6:02 pm
he will do. he denies the board will accept a plea lead story of the day, getting more people to sign up, 255 million active users. this was 35%. a bright spot. sales more than doubled year-over-year. more than $132 million. in after-hours trading, it was the lowest level. cory johnson is here in the studio. some positive metrics year, for sure. whole, i thought all of the numbers look better.
6:03 pm
get -- >> sequentially? >> some of the numbers got better. it was not the continuation of the trend that we see. i think it is a big deal. it does accelerate the growth rates. we saw the marigold that happened after facebook. it re-accelerated. pulledt know if trigger it off because they do not have the option of discovering mobile. twitter is already on mobile. trendsain, a lot of the that were slowing down, international users, all of these growth rates have slowed down, and all of them picked up this quarter. >> who knows what they are thinking?
6:04 pm
they have revamped profile pages. i really like it. it is a lot easier to use. you can see images. they are doing more things to help people they know find them on twitter. >> they want to make it easier for new users to find the things they want on twitter, because there is this mindnumbing aspect of ca too many tweets. a broadly used platform. nowhere near that. in terms of all of these changes, he did not credit any one single thing, and take a listen to what he had to say. >> there was no specific one quarter, onefirst specific change that was made for the majority of the growth of some of our improvements and our recommendations, based on
6:05 pm
our-- our algorithms on natives, mobile sign up process, and then as we mentioned in the company remarks, and process of making twitter more visually engaging. >> now, i do want to bring in a couple of guests, a research officer, from boston, and from new york, the ceo of a marketing firm. i will start with you. what numbers stood out to you on the call? you are helping the advertisers figure out where to put their money. are you convinced that they should put their money with twitter? guy, a i am a numbers story guy, a content guy. he is loving twitter. online content. it,s feeling bullish about
6:06 pm
and i think a lot of advertisers are figuring it out. to me, it is a glass half-full scenario. it has a little bit of a learning curve for people. the changes are starting to kick in. they are going to continue to broaden their growth, and it will become more of a mainstream platform, so i see it as a wide road ahead. deeply penetrated mainstream media, but what about mainstream users? like, onease is, facebook's, and it gets significantly more than that? >> yes, from my standpoint, emily, they have to focus on this point. twitter is still a little bit of a popularity contest. if you do not have a lot of followers, it kind of feels like
6:07 pm
you have not succeeded. like your table tv, could you watch 250 channels? do that at once? you want to enrich your media experience with twitter, and i think that that advertising number, that is what jumps out to me. if they can engage people who are participating from enjoying the conversation or following a conversation, that is money for them, and i think that could be a very, very important metric going forward. >> i agree with crawford. twitter is like learning a new language for a lot of people, and they have to do a better job at starting and teaching people the language, and more effective they are doing that, the more the numbers will follow. i think there are two stories, one for brands and one for television. , and was a story yesterday i think they have two things to play with. numbersord, to the
6:08 pm
point, which he is disdainful of, one of the numbers that , revenue per me user. take your pick. 75% to 95% year-to-year. they are trying to figure out how to match the marker. to me, that says that the people in the pool are enjoying the pool, and the advertisers are enjoying them. the trick is to either better target the people they have in the pool as well as to make it simpler to get people to slide into that pool and engage, we which gets back to user growth. are focused on user growth, which i think it's a bit of a red herring. that number is going to grow a lot faster going forward. some statistics that show that facebook and of thedemand way more advertising market than twitter, which is still miniscule compared to facebook and google.
6:09 pm
do you see twitter commanding a greater share of that market? >> this is not a two horse race now. you have linked in and others. it is justifiable. i think they need to realize they have got a lot more competition out there, and their dollars are being spread around right now. it is coming. to my guests, thank you both comments and don't forget, i will be having an interview tomorrow, the ceo of twitter. ♪
6:10 pm
6:11 pm
6:12 pm
♪ >> welcome back. i am emily chang. samsung is out with first order earnings, sales gaining three
6:13 pm
percent, but profit fell three billion, and samsung posted its lowest sale in its mobile phone business in five quarters. us in theon is with studio, and brian blair is with us on the phone. so, brian, is this saturation, or is this competition? >> i think it is a little bit of both. we saw some of this last year, and i think things are slowing down in the smartphone market, but there definitely is a because in aspect, china, a lot of asian, you are seeing others coming in strong at the low end, so i think they are getting hit on both sides. >> and one thing that really surprised me, how much samsung counts on mobile. something like 76%? >> that is right. it is three quarters of their operating profit, but from a about 32 of their
6:14 pm
money came from mobile, so this is the engine that has been driving samsung. semi conductors actually did pretty well, but the bulk of their business really does come from mobile, and right now, there are signs of weakness. >> you would have thought this company had such a strong position in the business. the do you think were weaknesses there? >> there are a couple of things that we have seen. one of the things going on, there have been shortages, there isrly where anticipation of the buildout of the four g network, and there are is some shortages of a lot of components, not just memory. there have been some imbalances, and there has been a lot of demand, but samsung does expect that to grow faster than the i thinkthe market, and
6:15 pm
we will see this between now and the end of the year. apple iphone numbers on the other hand were surprisingly good. right orpple doing better than samsung at the time, because the price points are very similar? >> samsung is attacking all tiers of the market. line, bute galaxy s5 they have products that go all of the way down in retail. they may be dipping more into the mid tier market with the 4 one 5c and keeping the the production line, but apple is focused on the high-end right now. samsung and apple really are taking two different approaches, but what will really be critical for apple is when they come out with the iphone six, and they do a larger screen. that is going to really attack samsung at the high-end, and it
6:16 pm
will be interesting to see how that plays out on the back end of the year. >> the cache number year, $50 billion in cash. apple, they are probably not invested in r&d like apple is. what do you make of that? >> well, you know what, they spent a lot of money on marketing. this is really where i think the bulk of their money is spent, and it is spent well. there is just a big presence in advertising. that is where a lot of their money goes, but you are right, they will be returning some of the cash to shareholders. i think apple has set a president with his last report, where they are increasing the size of their buyback, and they are getting a lot more back to investors. i think samsung is forced to follow. i think global investors are going to have a similar expectation, particularly given
6:17 pm
that significant quarterly jump in cash. directorght, managing at rosenblatt securities, thank you. big developments potentially happening this week. coming up, disney has just announced the cast of the new wars" movie, and more from bob geiger -- bob iger, coming up. ♪
6:18 pm
6:19 pm
6:20 pm
>> welcome back to "bloomberg west." chang.ily with yahoo!, live nation concerts will be streaming. since city saints and one tree hill. disney today,rom
6:21 pm
and out in the cast for the next star wars movie just minutes ago. on erlichman is in l.a. who isn't going to be? >> well, i think there are two parts to the story. some of the old people are coming back, carrie fisher, harrison ford. there has been a lot about them coming back. this movie will be 35 years after, so that will satisfy some fans, and here are some of the new names you have likely not heard of. team behind this team like jj abrams are more concerned that you focusing on star wars than the names. this is one important project for ceo bob geiger. the other is their new resort in shanghai. we caught up with bob iger and talked to him about that. here is what he had to say. justam very invested not in disney today but disney long-term, and one of the things
6:22 pm
that i think any ceo needs to do is not just manage a business successfully in the moment, but you manage it for success long-term, and among the decisions that we have made, collectively as a management team, was to invest in china and not just to plant seeds but to plant trees, which will hopefully fuel enormous growth for the company long-term, well beyond my tenure. so it means a lot to me, because when i think about my responsibilities, my legacy, shanghai disneyland looms large. china looms large. thatlking about things and theme resort that are unique to china. what are some examples of that? greatre is the team of imagineers, and
6:23 pm
we are bringing a disneyland , and our strong instinct and the research that we have done supports this, that people want a disney experience. but we also know like any other place in the world, there are cultural interests and tastes and cultural pride, and it is essential for this park in order for it to succeed reflect the tastes and the culture of china, so there are numerous elements of the park that will do that. we have not been specific about them, because other than mentioning a couple of attractions, we have said very little about what will be in the park, but i will give you one example. in all of our parks, there is a significant amount of entertainment, and most of that is in the form of shows that orically take place indoors under fireworks, and the creators for shanghai
6:24 pm
disneyland, those not just conceding the shows but choreographing them and directing them, they were largely chinese, and the performers will mostly be chinese, so there will be a very, very strong chinese element throughout the entertainment in these parks. one example. another is use of language. well, it would be interesting to say everything will be in mandarin. what we are doing is we are starting in mandarin, so all of the storytelling, all of the navigation and wayfinding, all of the menus, all of the language nomenclature will start in mandarin and be translated into english, instead of starting into english and translating into mandarin. is just another example of our approach. >> you recently acquired a company called maker studios. tell us about that, why disney wanted to a wire maker.
6:25 pm
>> much of their traffic comes from outside the united states. it is great for a company who needs to grow outside the united states. ofhave been extremely aware and impressed with huge growth in media digitally, particularly short form media, and maker has done a good job. they are the number one supplier of short form videos of youtube, not only identifying creators of short form video but distributing it very, very effectively and using algorithms and usage data to enhance distribution and consumption. bringing that kind of expertise into our company when the world is changing so rapidly right before our eyes in terms of media integration, media distribution, media consumption, we thought it was very interesting. >> that is the ceo of disney bob jon erlichman.wn
6:26 pm
coming up, mercedes-benz, just one of the sponsors who have with thee situation clippers owner. we will take a look at how big of a financial blow this is for the team, next. ♪ minutes past the hour, and that means bloomberg is on the market. i am julie hyman. the nasdaq higher by almost three quarters of one percent, and technology in particular performed well, the s&p 500 and the dow up. creepiest earnings reports helping to boost the major averages, and we are also looking at averages before the fomc meeting. not a lot of changing treasuries today, but they are poised for the best month since january as
6:27 pm
the fed does meet. economists have forecast that leaders will scale back their mostly debt buying program. for on the markets, i am julie hyman. ♪
6:28 pm
6:29 pm
6:30 pm
♪ >> you are watching "bloomberg west," where we focus on technology in the future of business. i am emily chang. adam silver has banned donald sterling. >> effective immediately, i am banning mr. sterling for life from any association with the clippers organization or the nba . calle ban follows a phone captured on tape with sterling where he said racist comments,
6:31 pm
and apparently sterling confirmed it was his voice on the tape. >> you want to broadcast that you are associating with black people. i am not you, and you are not me. >> with me in the studio, cory johnson, and a former head of the memphis warriors. you have been with us all day long. you have heard what he had to say. what are your thoughts? >> i would give him a gold medal. gold for silver. with a number of responses to craft a response to this stupidity that is going to take the lead in a more positive direction, not easy in the short run. >> how do you see that playing
6:32 pm
out? >> what we would love is to have to mr. sterling's lawyer and find out what they have been talking about today, what his advisers are telling him, and i think that is the next act here. >> it is going to encourage a subgroup of the team owners to make this recommendation. team owners do. >> a lifetime ban is about as long as you can get, and i think and the context of sports ownership, this may be a bit pushy, but he is a dead man walking in the nba. >> we have not heard from sterling himself? are we going to hear from him? >> well, the last time you heard from him may be the last time you heard from him. this is really bad. say, even with an absolutely tear filled apology,
6:33 pm
for the nasty statements? >> you mentioned earlier, the , comments, ads fascination with nazi is him n zism, but i wonder, in an era when we have so much social media, does this change what it an owner?e >> it changes all the constituencies, the players, the fans, the media itself. this has happened in three days. if this happened in the playoffs or in the off-season, i am not sure it would have blown up the way it has, and social media shows that words can be much more dangerous than any kind of weapon. the media.ioned
6:34 pm
would this have happened 10 years ago? >> look at many of the comments in the press conference. talk about donald sterling's history. and social media has basically put everything in hyperspeed, not just for the nba but all kinds of statements people make. there is no place to hide anymore. >> i was watching the press conference. , peoplel of reporters in the room who have sat with adam silver 20 years ago and are still covering the nba and have that knowledge. do you think that adam silver, , doon a more public stage you think he always identified that the clippers ownership was a problem? >> i do not know about that, but clearly today, he took charge of the steering wheel and looked in the front view, not in the
6:35 pm
rearview mirror. he took the windshield approach, which is i am not talking about the past. he made mistakes. this has all added up. the guy is out. >> game five is tonight. what is going to happen? >> a lot of great players. i happen to think, and don't we all want to predict what happens in sports, i think there has been a major body blow to the clippers in all of this, and i happen to think the warriors are going to take advantage of it, but the reason people love sports is that we do not know what the heck we are talking about until that happens. it has been discussed if they could even be $1 billion. a million dollars more than what people guest recently. i wonder if this changes the value of the franchise in any way, or pure economics and being
6:36 pm
in los angeles, that clipper name and jersey are just as valuable today and tomorrow? the value on the market is just as high? it is directly corrected to credit cards, so i believe the value goes up because you have incredible disposable income. they are immediately going to distance themselves with this sad chapter of the clippers and buy something that they can do wonderful stuff with. >> i wonder if this helps to re-energize the fan base in a way. they move beyond this, if, indeed, a sale happens. >> pretty re-energize by a guy running a point on my team and a lot of others. even more so, and that is what i think adam silver and the players association, the fans,
6:37 pm
sponsors, and everybody reached a positive park today. this is not going to go away overnight, but with a lifetime ban and taking such a strong position, they have positioned themselves in a very strong place. >> how does the league look at potential owners? as prominent a local business person you have in los angeles. magic johnson. how does the league look at people in business, not former personnel? >> well, if i had a business that did do diligence, i would be knocking on every sports door today. shown thatce has people who do deep investigation of potential owners is going to be even deeper. they look at it at -- with a microscope, a telescope, into finding out who are the owners, what is in their background, to
6:38 pm
make sure that an event like this never happens again. >> all right, game five, the clippers versus the warriors in l a, what do you think? it, but chriske paul. >> all right, cory johnson and our guest, thank you so much for joining us. coming up, the supreme court is deciding whether or not police should be able to search your cell phone. ♪
6:39 pm
6:40 pm
6:41 pm
back.come i am emily chang. a police officer can search a someone's bag, but what about their cell phone? the supreme court will hear a case today about whether or not they need to get a search warrant. a senior adviser, brian cunningham, joins us from l.a., adviser togal condoleezza rice, specializing in security and privacy law. you for joining us
6:42 pm
now. as it stands right now, some states you can, some states you cannot? like this is a case for the supreme court to take up because you have conflicted rulings. they are trying to deal with the fourth amendment and theories of privacy that are in some cases a decade or half a century old. court, theynia upheld the right of the police to search a cell phone upon making an arrest without a warrant, and a federal circuit court in boston said, no, you have to have a warrant, so the court almost had to take this case up, and it is a trend, finally after years, starting to look at the impact of technology. is probably ae lot more revealing than anything else they could search, right? how do you expect the supreme court to weigh in on this? >> there is a really interesting split between the justices on
6:43 pm
whether the prevailing theory of privacy over the last 40 or 50 years, reasonable expectation, withe right to property, these kinds of searches going forward, and i think, and i talked to some observers in the court this morning, the justices really are looking for a middle ground here. onlydo not -- there are two or three votes for a warrant requirement in every case, but they also do not want to continue saying if the device is on you, the police can do whatever they want. it is always risky to predict what the supreme court is going to do, but i think they are going to find a middle ground. a key part of the fourth amendment is whether the police youons are reasonable, so can have different outcomes in different situations depending on how likely it was that the person being arrested could destroy the data on the cell phone, whether it is an urgent situation, like a kidnapped child or something, and one
6:44 pm
iser thing they could do that they can come to a ruling that says the police can take the phone, dump off the data immediately, and then go that to a court to get permission to search that data. if they do not act immediately, the arrestee or someone could destroy the data on the phone. you have got mobile phone security companies working on this very thing to make it as easy as possible. can you give us some examples about when cell phone use is particularly crucial in an investigation or where it was abused? mywell, going way back to days as a cartel prosecutor in the clinton administration, records, data on phones, and in those days, it was not so much cell phones, but their work some cell phones, it was crucial in the investigations that brought down the cartels, and in the cases before the supreme boards, the data was crucial, as well.
6:45 pm
in one case, there were gang videos. it was a gang retribution murder case, and in another case, there was data that identify the home of the person who was arrested, police to go the there and search the home and find lots of guns and drugs and other things, and in both of these cases, the data was crucial, but the question was, was it time sensitive? did they needed at that moment, or could they have gone to a judge and secured a warrant? they'd in both cases had probable cause. i tell my friends to be conservative on these things. if you can get a warrant, get a war and, because you do not want to put the fate of all police actions on the court, and they could make bad law. >> ok, we are watching matt. brian cunningham, senior advisor, thanks so much for joining us. >> thank you. yourll ahead, the apple
6:46 pm
secrets you need to know before launching a startup. that is next. ♪
6:47 pm
6:48 pm
6:49 pm
>> welcome back to "bloomberg west." i am emily chang. apple and faster chips, and also cutting the price of the cheapest models. the entry-level macbook air is now starting at $899. our nexting of apple, guest spent four years with them and wrote a book. evangelisthe chief at an online design platform, and today he was with an online he joins us now from stanford. what exactly are you teaching? we are teaching how to start
6:50 pm
a company. this is a very, very positive entrepreneurial environment now. things are cheaper. infrastructure is cheaper. marketing is free or cheap with social media, so we want to provide a 13 course explanation of how to start a company raab on myself it is based and my partner, and we have been in silicon valley for two decades, and we have seen hundreds if not thousands of companies, and we wanted to pass on our knowledge about how to start a company. >> is this something you can't teach, when it comes to missionaries, like steve jobs and mark zuckerberg? there is something more to it. >> there is something more to it, but, still, with someone being entrepreneurial, they can still do things wrong, and so there is no reason to use the
6:51 pm
wrong kind of corporate structure to recruit in the incorrect ways, to increase your overhead too much, so i am not saying you can necessarily inspire someone to be an entrepreneur, but if you have someone who is an entrepreneur, you can certainly make that person a better entrepreneur, just as you can coach somebody, no matter what kind of athlete they are, to be a better athlete, and you can actually also take someone who is not athletic and make them more athletic. mentioned it is cheaper to start a company than ever before. do you think it is too easy to start a company these days? it isntrepreneurs tell us so easy, it is easy to get funding, the valuations are getting higher and higher, and -- correction, itf is not easy to get funding. it is just that you need less funding, so it is less important
6:52 pm
that you receive funding because so many of these things are free or cheap, and you can make the case that it is so easy, it is too easy, but i think that is a far better condition than it is too hard or that you have to right pedigree or right connections to start a company, so i think the more people out there pounding on keyboards and starting restaurants and stores, the better it is, because there is more variety, there is more addressing of niche markets, there is more experimentation. monetization of computers by apple, the democratization of computers by ebay, and then with google. company im ceo of, we are trying to democratize design. that horse is out of the barn. it is going to continue. there is nothing we can do to stop that. >> being a chief evangelist at
6:53 pm
are notfter that, there many places to go. it is not easy to top that. is inhose this because it the business of democratizing design. it is making it possible so you do not have to buy expensive hard to use software or to be a designer to create your own graphics. i had a wonderful time trying to democratize computing with apple, and this is the second time i have been a chief evangelist in my career, and we want to change the world. we want to make it so that people who could not make graphics before can now do this, and this is a huge, huge opportunity. it is also a huge challenge, but it is a very enchanting challenge. >> so any startups out there on your radar? things that are all the rage? keep is almost too hard to track of anymore, because as i said, it is so easy to start a company, and if you are in
6:54 pm
silicon valley, they are popping like popcorn all of the time. have everything that you ever wanted to do, and probably somebody else has wanted to do it. social media doing things. w, that is something i wanted to try, and somebody has already thought of it. diversity is a good thing. >> anything stand out to you? >> megatrend that i am trying to evangelize is democratization. ng started in fast and free and ubiquitous, and this course teaches you how to use these kinds of environmental conditions to create a great penny that will grow into a healthy business. that is what we are about. >> all right, a skillshare teacher and chief evangelist at canva.
6:55 pm
near alive or work transit line, great, but if you do not, it can be a big hassle. last mile vehicles have started to pop up. a company makes a vehicle you can take with you on a train. take a look. grant, and i am .he inventor this is an all electric vehicle. has a range of about 20 miles and goes about 15 miles an hour. one of the things i wanted to itign into the urb-e is that is incredibly small, and you can't take it with you on a train or a bus. it takes about half a second for it to become an actual vehicle. it also weighs just under 30 pounds.
6:56 pm
idea came up with the based on the need for people to have a vehicle to get to and from work if they choose to take public transportation. it is the last mile scenario. bicycle,ferent than a because there is a short wheelbase, and the wheels are very small, and the feet are connected to the steering. typically, most people will go a few feet, and they will get it. >> available for pre-order now. the company is hoping to get its first units out in the next months. tomorrow, ieminder, will be interviewing the twitter ceo, talking about efforts to increase users and user engagement, and much more with the twitter ceo coming up tomorrow.
6:57 pm
6:58 pm
6:59 pm
7:00 pm
>> welcome to "lunch money." take a look at today's menu. at the milken conference, the heads of lack stonehenge starwood share their expertise. in motors, we have the cars of the future from the google driverless to the ford ultralight and around the world, russia may not be on the best speaking terms with the u.s. but north korea is a different story. the battle for content and media is told by media these -- disney ceo bob iger. we are going to kick it off --


info Stream Only

Uploaded by TV Archive on